Kerala govt to rollback tax on land registration among kin

During discussions in the assembly, minister Thomas Isaac informed that the new tax structure for such registrations would be finalized after discussions by the subject committee on finance.October 27, 2016, 15:00 IST

THIRUVANTHAPURAM: Considering the demand of the treasury and opposition benches, the state government will consider the rollback of 3% tax that was introduced in the previous budget for registration of land deeds among family members.

During discussions in the assembly, minister Thomas Isaac informed that the new tax structure for such registrations would be finalized after discussions by the subject committee on finance. The UDF government had set Rs 1,000 as the ceiling for stamp duty for registration of land deeds within families.

The minister also told the house that he was willing to withdraw the purchase tax imposed on sale of gold ornaments with retrospective effect, provided the opposition raised the demand on record. The 5% purchase tax was imposed on sale of gold ornaments by the UDF government. But it was argued that the tax was only on paper and the then finance minister had issued directives to freeze that tax collection.

"I'm ready to take back the purchase tax on gold. But since the former minister KC Joseph has cautioned me against the rollback of budget announcements with retrospective effect, I won't take a call on my own. Let the demand come from the opposition," he said.

After Muslim league MLA, P K Basheer questioned the withdrawal of 14% tax imposed on mobile charger, finance minister Thomas Isaac said the government would cancel the same. "At present, 5% tax is imposed on mobile charger that is sold with mobile handsets. For separate sale of mobile chargers, the tax is 14%. The government only wished to unify the same as 5%. Since the decision to unify the tax with retrospective effect has become a point of debate, the government will withdraw the tax unification," he said.

The minister said the government was open to the recommendations of the subject committee on the demands raised by MLA VD Satheesan on the tax structure for flat construction business. Satheesan pointed out that the unscientific tax structure was tempting builders to evade tax net. The bill was referred to the subject committee after the conclusion of discussions.